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New York Program to Help Retain Renewable Energy Resources

Jan. 22, 2021
Administered by NYSERDA, the new Competitive Tier 2 renewable energy program will ensure the state's existing baseline renewable energy generation is retained through three annual solicitations

Gov. Andrew M. Cuomo launched a large-scale renewable energy procurement program, known as Competitive Tier 2, which will retain New York's existing renewable energy resources, promote lower statewide carbon emissions, and help support the state's economic recovery by increasing in-state competition and reducing energy costs.

Today's announcement demonstrates swift progress under the state's recently expanded Clean Energy Standard and advances the state’s goal to obtain 70 percent of the state's electricity from renewable sources by 2030 as mandated in the Climate Leadership and Community Protection Act.

Administered by the New York State Energy Research and Development Authority, the new Competitive Tier 2 renewable energy program will ensure the state's existing baseline renewable energy generation is retained through three annual solicitations, in parallel with NYSERDA's other solicitations for new large-scale land-based and offshore wind projects.

In its first Competitive Tier 2 solicitation, issued today, NYSERDA is seeking proposals from existing privately-owned hydropower and land-based wind generators in New York State that entered commercial operation prior to January 1, 2015.

NYSERDA's procurement approach will increase the amount of locally-produced renewable energy under contract with New York State, promote greater in-state competition to help the state achieve the lowest possible cost of renewable energy for New Yorkers, and allow Community Choice Aggregations to continue to voluntarily participate in the market.

NYSERDA will evaluate the competitive proposals based on the lowest price received. Proposals are due on February 24, 2021 by 3:00 P.M. Interested proposers can apply here. NYSERDA expects to announce the awards in the second quarter of 2021.

A webinar will be held on January 26, 2021 at 3:30 P.M. to provide interested proposers with an opportunity to learn more about this solicitation. Those interested in the webinar can sign up here and are encouraged to register and submit questions in advance.

The announcement complements the state's actions to more quickly advance development of large renewable energy projects, markedly decreasing fossil-fuel generation and harmful emissions in the State. In October, the New York State Public Service Commission approved an Order directing NYSERDA to create the competitive Tier 2 program as part of an expansion of the landmark Clean Energy Standard, refocusing New York's existing regulatory and procurement structure on achieving the goals laid out in the CLCPA.

Through its Competitive Tier 2 solicitations, NYSERDA will contract with awarded generators for the purchase of Renewable Energy Certificates. A REC represents the environmental attributes of one megawatt hour of electricity generated from a renewable source. The Competitive Tier 2 program is funded through a new Tier 2 REC obligation required of load serving entities. New York State's LSEs are required to purchase Tier 2 RECs from NYSERDA each year.

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